Cairn gets 10-yr extension for Ravva oil, gas field

Cairn Oil and Gas, a Vedanta group firm, has secured a 10-year extension of the contract for its Ravva oil and gas fields off the Andhra Pradesh coast, the company said on Wednesday.

"With this extension, the production sharing contract (PSC) is now valid effective October 28, 2019, for the next 10 years," the company said in a statement.

Ravva, the oldest producing asset for Cairn in India, becomes the first large field to get PSC extension under the 'Policy for the Grant of Extension to the Production Sharing Contracts signed by Government in awarding small, medium-sized, and discovered fields to private Joint Ventures' two-and-a-half-decades ago.

"The extension will enable the joint venture partners to recover about 13 million barrels of oil equivalent (boe) of oil. In addition, the JV partners will invest Rs 550 crore (USD 78 million) to drill seven Revised Field Development Plan (RFDP) wells targeting additional reserves of 11.7 million boe," the statement. "These campaigns put the JV on course for yet another milestone in hydrocarbon recovery from this world-class offshore asset."
Speaking on the development, Anil Agarwal, chairman of Vedanta Resources Ltd, said, "The Ravva PSC extension is one more example of the trust the government has reposed in us. We look forward to working with all our partners towards achieving our vision of contributing 50 per cent of the country's domestic production and supporting the government in its energy security goals."